Walter Liptak: Hey, thanks, guys, and good quarter. Wanted to ask about the Comtech pull forward and why did that order get pulled forward?
Gene Lowe: Yes, actually, Walt, that was – the pull forward actually wasn’t the, sorry if we weren’t clear there wasn’t the Comtech project that was already forecasted. This was other project work that pulled forward from Q2 into Q1. I mean, as you know, some of these projects gating the timing of them between quarters is never easy. So it just was a function of how we executed that contract and when we were ready to deliver it relative to Q1 versus Q2.
Walter Liptak: Okay. Yes, thanks. Okay. Thanks for the clarification. So it was not one order that got pulled forward? It was many orders that pulled forward?
Gene Lowe: Yes, it was more than one.
Walter Liptak: Okay. Okay, great. And could you repeat what the backlog was in Comtech? I mean, in the DNM segment, sorry.
Gene Lowe: Yes, sure. I’ve got that pretty well. The DNM segment backlog was $207 million at the end of the quarter, and in HVAC it was $462 million at the end of the quarter.
Walter Liptak: Okay. All right. Good. Yes, the backlog, even considering the large orders that rolled off last year and the timing of that order getting pulled forward, I mean, still pretty robust order activity in DNM. I wonder if you talk about the funnel and maybe Comtech funnel or some of those projects that we saw last year, are those done for the foreseeable future, or is there a nice funnel in Comtech and for some of the other products within DNM?
Gene Lowe: Yes, I would say, Walt, if you look at it from where we stand, we feel good about the funnel. We did have that large pass through project, which is a – we’re replacing that this year. So that’s where we’re actually seeing growth in what we would call our core. If I look at the funnel across our businesses, that’s predominantly in Comtech and then in transportation, I would say activity is very healthy. Transportation, this is the one area that we’ve called out that has been supported by some of the government infrastructure spend, and we’re seeing a lot of activity there, a lot of bidding there. We actually feel very, very comfortable about 2024. We actually see a lot of opportunities for 2025 and 2026.
So and as we said in our prepared remarks, we feel very good about the project activity there. I’d say the same is true for Comtech. There – that as a reminder that business was very global in nature, serves many countries and we’re seeing a lot of activity. We’ve gotten a lot of key wins. We like our technology. We’re actually getting very big, very positive feedback from some of our newer customers that are using our technology there. So from a project side of the house, we feel very good for 2024. Also, looking ahead to 2025, we feel like we’re well positioned.
Mark Carano: I think adding to that, when you look at the backlog, Walt, and you exclude the Comtech project that we’ve referred to over the last many quarters, backlog is actually up kind of high single digits.
Walter Liptak: Okay. All right, that’s great. Yes. And it’s great to see orders pulled forward. I think this quarter there were a lot of orders that pushed out. And so, yes, congratulations on the next quarter. Thanks.
Mark Carano: Thanks Walt.
Gene Lowe: Thanks.
Operator: Thank you. This concludes the question-and-answer session. I would now like to turn it back to Paul Clegg for closing remarks.
Paul Clegg: Thank you, everybody, for joining the call. We look forward to seeing many of you at the upcoming conferences and road shows and we will talk to you next quarter. Thank you.
Operator: Thank you for your participation in today’s conference. This does conclude the program. You may now disconnect.
